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Pension Management Firms Warned Over Excessive Charges

UK government to act on fears that worker’ pensions may become worthless due to hefty fees.

Steve Webb, the pension’s minister, is to announce a consultation in what represents a new government policy of intervention in the pensions market.

Steve Webb, the pension’s minister, is to announce a consultation over the policy following concerns that many workers and ex-employees are facing excessive charges.

An Office of Fair Trading report to be released on Thursday is thought to uncover widespread practices of ramping up costs, which wipe out pensions.   It follows claims that some savers are losing more than a third of their pension pots in fees and commissions.

Legal changes are expected to be pushed through over the next year amid concerns over “rip-off” schemes.

It found evidence of firms charging an annual management charge of between 0.5% and 0.7%, doubling to 1.2 to 1.5% if a person leaves the company and stops paying into the pension.

Why you leave your pension in the UK until retirement?

Due to the excessive annual management UK pension funds charges, leaving your pension fund in the UK until retirement may not be a wise decision, as  you could find that there is nothing left in the pot to purchase an annuity with, due to the excessive ongoing administration costs.

Should you require any further information then please call Colette on 9301 2200 or email pensions@mckinleyplowman.com.au

written by:

McKinley Plowman